4 Facts and Figures That Prove the Importance of EWA
EWA is a relatively new industry, but in the last several years of its widespread adoption, research organizations have invested in better understanding its impact.
The gold standard in the industry is the 2019 Visa Insights Report on Earned Wage Access, so we thought we’d share a few of the report’s highlights and key takeaways.
Check out our four selections below, or read the full report here. Whether you’re already familiar with EWA or not, it’s the perfect resource to understand why EWA is so important for the future of HR and finance.
- 44% of employees have less than $500 saved for unexpected expenses.
It’s not at all uncommon for people to face unexpected financial hurdles of $500 or more, but the majority of employees aren’t prepared for that scenario. Without a safety net in place, the only option (aside from EWA) is to take out a predatory inflation loan. EWA is the safety net for these employees, providing access to wages that they’ve already earned. No high-interest loans needed.
- 68% of employees feel personal finance issues are impacting their health.
Financial issues put a major strain on many employees, with almost 70% reporting that their health is impacted by the stress. Health issues are a concern on any level, but they also affect employee absenteeism and healthcare costs in the long term. When finances are in check, employee wellness is improved.
- 95% of employees are interested in working for an employer who provides EWA.
As you can imagine, the factors we’ve highlighted so far mean that employees want to work for an employer who offers EWA. It’s a benefit that’s becoming increasingly popular among employees—especially in certain industries and age groups—and the companies that get on board early are reaping the rewards.
- The top three categories for EWA use are groceries, unexpected expenses, and utilities.
Finally, the Visa report dispels a common myth in the EWA space: most employees aren’t using EWA funds to go on a shopping spree or book a weekend getaway. Day-to-day expenses, like groceries and utilities, are critically important and impossible to avoid. If payday is weeks away, EWA is available to cover interim costs.
There you have it! EWA is already playing a crucial role for employee finances (and employer success), and it’s only expected to continue to accelerate. If you already have EWA access through Keeper, get started now in the App Store or Google Play Store.
Otherwise, talk to your employer about being an early adopter, or visit our website here for more information.